Everything that’s worth having will have its ups and downs: success, a happy relationship, and following us on Instagram. It’s important to stay strong and stick through even the tough times. And a hefty investment portfolio is no exception. This could mean losing half of your money TWICE over a 10 year period like in the early 2000s. But if Tom had given up and stopped investing in 2008, he would only have had a little over $100,000.
No matter what is happening in the world, there will always be people who will say “now is not a good time to invest.” It’s easy to ignore them when the market is doing well, but not so much when the market is crashing. And this is the time that it’s most important to not pay attention to them.
Don’t get too fancy with anything when the market falls. Continue spending less than you make and investing the difference. Use these down markets as opportunities to continue buying shares of index funds at slightly lower prices.
What if Tom didn’t want to wait 30 years to become a millionaire or if he wanted to end up with more than $1M? Tom would have had to invest more money each month. There is no magic bullet that can accelerate your wealth building. You have to increase your income. Spend less than you make. And consistently invest the difference. It works every time.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
